OSI's Asia ambitions

SHANGHAI, China – The grand opening of two poultry processing operations in China has Aurora, Ill.-based OSI Group LLC on a path to becoming one of China's largest poultry producers and food processors.

OSI and its partners currently operate three vertically integrated poultry businesses in China. The newest operation, the DaOSI complex, is a joint venture between OSI and Doyoo Group, a leading Chinese poultry company. Rounding out OSI's China operations are OSI Group (Weihai) Poultry Development Co. in Shandong Province and SunOSI Poultry Development Co. in Fujian Province. SunOSI is a joint venture with Fujian Sunner Development, a leading publicly-traded Chinese poultry company. OSI invested more than $300 million in DaOSI, bringing its total investment, together with all of its partners, to more than $750 million in the three poultry operations, according to the company.

The DaOSI complex is OSI’s largest poultry operation globally. The complex covers more than 36,500 square meters, or nearly 400,000 square feet, the company said. OSI Weihei Foods, OSI’s further processing plant in Shandong Province, produces specialty products and spans approximately 7,500 square meters, or 80,000 square feet. OSI Henan Foods, which is being built in two phases, will be substantially larger at 55,000 square meters, or more than 592,000 square feet, according to OSI. Phase one of the project is finished. Phase Two is slated for completion in 2016.

The additional production capacity puts OSI on track to process more than 300 million birds per year, the company said. OSI will be one of the few poultry processors in China with a business footprint that spans country — north, central and southern China. Additionally, OSI expects to employ close to 10,000 people throughout the Asia Pacific region by the end of 2013.

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